8 Tips on How to Save Money on Rideshare Insurance


(Harry) #1

As you know, rideshare insurance is important for rideshare drivers as it provides coverage during periods when you are using your car for ridesharing that is either not covered by typical insurance or if they do cover, coverage is limited.

Read More: Why you need rideshare insurance?

Conversations revolving around insurance boil down to one – how can I get affordable rideshare insurance? Following are eight tips on how to save money on rideshare insurance.

1. Choose Your Car Wisely

The car you buy dictates the amount of insurance you pay. This is true whether you use your vehicle for ridesharing or whether you use it for your own personal needs.

It is therefore important to not just focus on the bells and whistles and aesthetics of the vehicle but to also focus on how the age, make and model of the vehicle determines what you will pay for insurance.

Generally, the newer and more expensive the car, the more it will cost to insure. In addition, newer cars come with more standard safety features. Cars with more safety features such as such as airbags, anti-lock brakes, forward-collision warning, or even an automatic braking system, are eligible for additional insurance discounts.

Ultimately you should always buy a car you can afford. You don't have to buy an expensive car just to secure discounts from safety features. Safety features can be added to a less expensive vehicle for an affordable price.

You can even go as far as inquiring from insurance providers which safety features or combination of features can get you a larger discount and focus on adding those. Just remember to tell the insurance agent what you have added so that it gets factored into the calculation for your quote.

2. Keep A Clean Driving Record

Multiple factors go into determining what one will pay for auto insurance premiums. At the end of the day, however, it all boils down to the liability and risk you present to an insurer.

Your driving record is a clear indicator of the level of liability and risk you would present to an insurer. If your record shows multiple incidents or infractions, an insurer may either choose to increase the amount of your premium or choose not to cover you at all.

None of these options are attractive. It is therefore in your best interest, both financially and for your peace of mind, to keep a clean driving record.

3. Always Shop Around

The insurance industry is highly competitive. There is always a deal to be had as the various companies try to outdo each other to entice the customers. So always shop around for insurance and don't just settle for the first one you come across.

A great place to start your search is at the RidesharingForum’s Insurance List. On this post, you can search for auto insurance companies by state.

Before you start looking up specific providers, make sure you know what your state's minimum car insurance requirements are. This will ensure that the policy you get meets the legal requirements. This information can be verified on the Motor Vehicle Department's website for your state. Only use this site. Do not use information on other sites, as the information may be incorrect or not current.

Just as with buying a car, choosing insurance also boils down to what you can afford. Take a look at the following example:

  • Policy One: $15,000 person/$30,000 accident (bodily injury) and $10,000 property damage. Total: $50 per month.
  • Policy Two: $50,000 person/$75,000 accident (bodily injury) and $10,000 property damage. Total: $75 per month.
  • Policy Three: $15,000 person/$30,000 accident (bodily injury) and $50,000 property damage. Total: $55 per month.

Policy 1 and 3 only differ by $5 yet policy 3 gives you $40,000 more in property damage coverage. Policy 2 costs more than policy 1 and 3 by $20 and $25 respectively but it covers more.

It is tempting to go cheap but remember, cheap can be expensive especially when you factor in the cost of repairs in the case of an accident.

To avoid paying for what you don't need or not getting what you need thinking you are saving money, always make sure that you are comparing apples to apples and not apples to oranges when gathering quotes from multiple providers.

4. Bundle your coverage

Many insurance providers offer discounts when you 'bundle' or combine a number of policies under one provider as opposed to using separate providers.

It is, therefore, a good idea to make a list of the different insurance policies you currently have like home or rental insurance and see if there are any cost savings to be gained by bundling.

While most people do end up seeing savings when they bundle, never assume that bundling will be cheaper for you. As you shop around, always compare the quotes with and without bundling.

5. Skip roadside and rental car coverage

In a bid to make their products more attractive to customers various companies are adding certain benefits to their products that may result in their being no need for you to get separate coverage for roadside assistance or rental car coverage.

For instance, Visa and American Express offer roadside and rental car coverage with certain cards and AT&T and Verizon offer roadside assistance.

Keep in mind that roadside assistance and rental car coverage programs come with various restrictions. So be sure to take into consideration the following when making a decision.

  • Does the plan cover the car or the driver?
  • Are you covered in other vehicles or only the one listed?
  • Are they any sign-up and yearly fees?
  • How many tows are included without additional cost and how far can you be towed?

6. Use any applicable discounts

Certain organizations you belong to or experiences you have acquired can qualify you for various insurance discounts. These could include your work, college or university or military organizations.

You may also find that certain insurance providers may also offer or work with organizations that offer advanced driving courses. Look into taking these courses so that you may secure the associated discount that comes with successfully completing the course.

7. Avoid lapses in coverage

Part of the liability and risk you present to an insurer mentioned earlier is also linked to your consistency with insurance coverage. If your insurance record shows lapses in coverage, these are viewed as red flags to insurance providers.

One area people tend to overlook that creates a lapse in coverage is when you're switching from one company to another. Remember insurance companies want to charge as much as they can for their policies so don't give them the opportunity to deny you a discount because you neglected to make sure there was no gap between your old and new coverage.

8. Pay your insurance bill 6 to 12 months ahead

Paying your insurance premium in multiple installments is attractive on the surface only. When you add up what you pay at the end you will find that you end up paying more.

So as much as it is possible, get into the habit of paying your insurance bill in as few installments as you can manage. A great way to do that is to consciously get into the habit of saving the amount due ahead of time so that you are not scrambling at the last minute trying to come up with it.

There are definitely savings to be had if you put the above tips into use. Some will take time, like creating a good driving record especially if you have a few dings on your license already but if you are willing to put in the time and the effort you can save yourself money in the long run.

Are there any other strategies you would recommend?